Samsung could be set to beat earning expectations in Q3, market observers from South Korea said on Sunday. The company posted record profits of 14.07 trillion won ($12.38 billion) in Q2, while sales numbers hit 61 trillion won ($54.8 billion). Despite this, South Korea-based Samsung warned that earnings and profits in the third quarter of the year could fall due to decreasing LCD and OLED panel prices, as well as tougher competition in the semiconductor market.
Apple seems to be the main reason for the new, more optimistic forecasts. According to industry watchers, Samsung’s OLED panels and chips could experience a significant boost in sales thanks to Apple’s upcoming iPhone lineup. The South Korean giant is expected to supply chips for all three iPhone models, while the upcoming iPhone X, which will reportedly introduce a new all-screen design, is set to feature an OLED display manufactured by Samsung. This, along with an increased demand for mobile devices during the quarter, means sales of OLED displays and chips could be significantly higher than originally forecast, to the point of reaching another new record for the company of 14.35 trillion won in profit along with 64.84 trillion won worth of total sales. Nonetheless, it appears Samsung’s more conservative figures reflect an uncertainty in the market, as well as the decreasing price of its semiconductor chips. In terms of the fourth quarter of the year, the company could be set for yet another record period. With Apple’s next generation of the iPhone being set for a release in the near future, not to mention the release of Samsung’s Galaxy Note 8, demand for the company’s chips will keep prices high, while Apple’s reliance on Samsung’s OLED displays should maintain demand throughout the quarter.
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As well as this, initial pre-order figures of the Galaxy Note 8 have reached record numbers in the US and South Korea, proving the company has redeemed itself after last year’s Galaxy Note 7 ordeal. Nonetheless, it wouldn’t be surprising to see the company’s smartphone business experience a jump in profits thanks to the new flagship. This could potentially keep the firm ahead of Apple in terms of related profits for yet another quarter, some industry watchers believe.